ASIC has permanently banned Leroy Bowmaker, former director of All Class Insurance Brokers Pty Ltd (All Class), from engaging in credit activity.

Mr Bowmaker was the director of Castle Hill-based All Class from 2001 until his bankruptcy on 27 February 2014.

ASIC's investigation found that Mr Bowmaker was not a fit and proper person to engage in credit activities because, between 2012 and 2013, he:

• misused over $640,000 of client insurance premium funds
• made dishonest representations to underwriters to explain All Class' non-payment of client insurance premiums
• failed to pass on over $330,000 in insurance premiums, meaning a client had no insurance in place and suffered loss when attempting to claim on the policy
• submitted 12 false applications for loans to pay insurance policy premiums, where the insurance policies did not exist or were cancelled soon after the loan application was approved, and none of the loan funds received were actually used to pay for the insurance policies specified
• lacked the competence to engage in credit activities
• became bankrupt, in part, as a consequence of his involvement with All Class

Deputy Chairman Peter Kell said, 'Dishonest conduct is not compatible with the honesty and integrity required of those engaging in credit activity. ASIC will ensure that individuals who behave dishonestly are removed from the credit industry.'

Mr Bowmaker has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Background

ASIC cancelled the Australian financial services (AFS) licence and Australian credit licence of All Class on 6 May 2013, after it went into liquidation. Mr Bowmaker was the sole responsible officer of All Class' AFS licence and the sole key person identified in All Class' ACL.

ASIC permanently banned Mr Bowmaker from providing financial services on 2 July 2013.